Gold bullion was steady from overnight levels during low-key European trading on Friday, with the market seen staying trapped within its week-long $435.00/440.00 an ounce band, traders said.
"Lacking the impetus to break above $440 or below $435, gold is likely to consolidate between them," Standard Bank London said in a report.
A sluggish dollar and firm oil prices kept the market close to the upper end of the range, with spot indicated at $438.30/439.10 an ounce at 1416 GMT, against $438.00/438.70 late in New York on Thursday.
Traders said any move higher would meet selling pressure.
"It may well test $440.00 again, but there is a lot of resistance up to $445.00," a trader said.
Bullion markets have largely been influenced by currency-related movements this week, as offtake has been low-key and speculators have stood aside.
Dollar softness on Wednesday, when gold peaked but was unable to penetrate the top end of the range, was sparked by softer-than-expected US durable good orders for July.
On Friday the University of Michigan reading of consumer sentiment came in at 89.10 versus analyst expectations of 92.70 and failed to stir gold.
Julia Hamblett of Dresdner Kleinwort Wasserstein said that the risk is still towards the downside, given high net longs and weak silver, despite the euro gains and firmer oil prices.
The market is particularly vulnerable to a sudden decline, given the futures speculative overhang - non-commercial net longs on COMEX stand at a record 157,607 lots.
Silver, which overnight dropped to its lowest since early-May, was clinging to range-floor support, but looking increasingly vulnerable on the downside, traders said.
US futures fell to 6-1/2 month lows on Thursday on speculative selling and option-related sales. A brief spike took spot prices to $6.77 -- under the $6.80 floor of the current $0.40 range - but as the moving averages (MAs) are declining a more substantial downside test is expected.
"Although regaining $6.80 overnight, silver remains vulnerable to further selling and could slide further into oversold territory before consolidating," Hamblett said.
Standard Bank said that if $6.80 held it could provide a base to build on for future rallies.
"Failing which, $6.50 would be the next likely target to look to," Standard Bank said.
Spot silver stood at $6.80/6.83, against a previous $6.81/6.84.
In other metals, platinum was at $892.00/896.00, versus $894.00/898.00. Palladium was little changed at $182.00/185.00 from $183.00/187.00.